The Bombay Stock Exchange (BSE) has issued a circular emphasising that every listed company must maintain public shareholding of at least five per cent as a result of implementation of the approved resolution plan during Corporate Insolvency Resolution Process (CIRP). This circular was issued on 31st January, 2023.
The said requirement was introduced through an amendment in the Securities Contracts (Regulation) Rules, 1957 on 18th June, 2021.
Hence, based on the said amendment Resolution Professionals (RPs) of listed entity/ies undergoing Corporate Insolvency Resolution Process (CIRP), are advised to ensure that their resolution plans approved by NCLT is compliant with the abovementioned provisions and other applicable provisions/regulations as amended from time to time.
Additionally, regardless of the stage of the CIRP, listed companies / RPs must take all requisite steps to modify the resolution plans to ensure compliance with above-mentioned requirement.
